(Adds details from CFPB statement, action by state regulators
against Ocwen)

WASHINGTON, April 20 (Reuters) - The U.S. Consumer Financial
Protection Bureau on Thursday sued Ocwen Financial Corp
and its subsidiaries, alleging the mortgage loan servicer's
"years of widespread errors, shortcuts, and runarounds cost some
borrowers money and others their homes."

The bureau said in a statement that it had uncovered
evidence that Ocwen, based in West Palm Beach, Florida, had
"engaged in significant and systemic misconduct at nearly every
stage of the mortgage servicing process."

Regulators from Wisconsin and more than 20 other state
regulators have also issued regulatory orders or charges against
Ocwen subsidiaries to address violations of state and federal
laws, the Wisconsin Department of Financial Institutions said in
a separate statement on Thursday.

Ocwen is one of the country's largest nonbank mortgage
servicers. It serviced almost 1.4 million loans with an
aggregate unpaid principal balance of $209 billion at the end of
2016, according to the CFPB statement.

The bureau said some of Ocwen's alleged violations included
illegally foreclosing on homeowners, failing to credit
borrowers' payments, servicing loans using error-riddled
information, and deceptively signing up and charging borrowers
for add-on products.

"Ocwen has repeatedly made mistakes and taken shortcuts at
every stage of the mortgage servicing process, costing some
consumers money and others their homes," CFPB Director Richard
Cordray said.

The complaint was filed in federal district court for the
Southern District of Florida.
(Reporting by Washington Newsroom; editing by Eric Walsh and
Richard Chang)

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